Mallet, a notorious swindler, picks 10 stocks and generates all 1024 permutations of “stock will go up” vs. “stock will go down” predictions.
He then emails his predictions to 1024 different investors.
One of the investors receive a perfect, 10 out 10 prediction sheet and is (Mallet hopes) convinced Mallet is a stock picking genius.
Since it’s related to the Texas sharpshooter fallacy, I’m tempted to call this the Texas stock-picking scam, but I was wondering if anyone knew a “proper” name for it, and/or any analysis of the scam.
There’s a scam I’ve heard of;
Mallet, a notorious swindler, picks 10 stocks and generates all 1024 permutations of “stock will go up” vs. “stock will go down” predictions. He then emails his predictions to 1024 different investors. One of the investors receive a perfect, 10 out 10 prediction sheet and is (Mallet hopes) convinced Mallet is a stock picking genius.
Since it’s related to the Texas sharpshooter fallacy, I’m tempted to call this the Texas stock-picking scam, but I was wondering if anyone knew a “proper” name for it, and/or any analysis of the scam.